Sky Petroleum, Inc. (OTCBB:SKPI), an oil and gas exploration
company, is pleased to provide an update on the testing program
regarding the Mubarek K2-ST4 well located in the Mubarek Field,
offshore United Arab Emirates.
Crescent Petroleum Company International Limited ("Crescent"), the
operator of the Mubarek Field, reports that the well was drilled to a
total depth of 13,528 feet into the Ilam oil reservoir, and has
subsequently been stimulated with acid and put on production with gas
lift from the Ilam reservoir. After initial tests, the well was
flowing at 742 BOPD (Barrels of Oil per Day). The well will be
observed in order to optimize production conditions.
Mubarek Field Program
The Participation Agreement with Crescent gives Sky Petroleum the
right to participate in a share of the future production revenue by
contributing up to $25 million in drilling and completion costs
related to two obligation wells in the Mubarek Field, offshore United
Arab Emirates. The $25 million commitment for both wells was fully
paid by the end of the first quarter of 2006. On completion of the two
obligation wells a further well development program will be evaluated.
About Sky Petroleum
Sky Petroleum (OTCBB:SKPI) is an oil and gas exploration company.
Sky Petroleum's primary focus is to seek opportunities where
discoveries can be appraised rapidly, and developments can be advanced
either by accessing existing infrastructure, or by applying the
extensive experience of established joint-venture partners. In
addition, the company also plans some higher risk, higher reward
exploration prospects. For additional information please visit
www.skypetroleum.com.
Safe Harbor
Except for historical information, the matters set forth herein,
which are forward-looking statements, involve certain risks and
uncertainties that could cause actual results to differ. Potential
risks and uncertainties include, but are not limited to, the ability
to stabilize the well, the ability to carry out additional stimulation
of the zones producing oil, the accuracy of estimated production rates
and the price of crude oil, the accuracy of operating costs and
monthly revenue forecasts, the timing and success of other proposed
infill drilling programs, the timing for completing the second
obligation well, the contemplated continued production at the Mubarek
Field, if any, the competitive environment within the oil and gas
industry, the extent and cost effectiveness with which Sky Petroleum
is able to implement exploration and development programs in the oil
and gas industry, obtaining drilling equipment on a timely fashion,
commodity price risk, and the market acceptance and successful
technical and economic implementation of Sky Petroleum's intended
plan. Additional discussion of these and other risk factors affecting
the company's business and prospects is contained in the company's
periodic filings with the SEC.
